Spitzer Targets Mutual Funds
In Latest Regulatory Campaign

A Wall Street Journal Online NEWS ROUNDUP

Updated Sept. 3, 2003 11:59 p.m. ET

And now it's the mutual-fund industry's turn.

Eliot Spitzer, the New York state attorney general and scourge of Wall Street, announced a settlement today with a hedge fund that allegedly engaged in illegal trading schemes with several large mutual-fund companies that potentially cost investors billions of dollars. Canary Capital Partners, two related entities and the fund's manager, Edward J. Stern, have agreed to make restitution of $30 million in illegal profits generated from unlawful trading and pay a $10 million...